This will force the already-desperate Bank of Japan and European Central Bank into even more drastic measures. These worries are why the Japanese and European stock markets have stalled while Wall Street celebrates its pardon.

Who knows what dire effects those future policies may have on the global economy?

Inmates Running the Asylum

And all because Janet Yellen is afraid to stand up to Wall Street and deliver the harsh reality of raising interest rates.

At the very least, it will lead to incoherent policies. And perhaps a disaster.

The price signaling mechanism of the financial markets will go haywire. Why should a stock trade at $100 per share? With bolstering from the Fed, why not $500 or even $1,000 per share?

The fundamentals are becoming meaningless.

Even though earnings estimates in the first quarter of 2016 fell by the steepest level since the first quarter of 2009, the U.S. stock market kept soaring. Take a look at the graph below to see the shocking disparity in the market’s current policies.

Yellen’s Fed seems to have forgotten that price signaling is a key component of modern capitalism. We’re fast approaching the point of chaos. Buyers beware.

Good investing,

Tim Maverick

Tim Maverick boasts decades of experience in the investment world. He spent 20 years at a major brokerage firm - as a trading supervisor and broker working directly with clients. Learn More >>

Machine-learning algorithms are cleverly downloading faces from social media pages like Facebook… and then uploading those faces to unsavory videos. This is the latest example of technology moving faster than our moral ability to use it.

One mystery trader just rolled over a massive volatility bet that could pay out $260 million if he’s right again. Can you blame him? He’s got seven-plus years of the bull trend on his side. Well, none of that means squat if you’re Goldman Sachs.